Opportunities for Foreign Direct Investment in …majority share ownership (>50% FDI). 4. Less...

© 2017 by Indonesia Investment Coordinating Board. All rights reserved

Natalia Ratna KentjanaDirector of Investment Promotion Development

Thailand Overseas Investment Forum 2017

Opportunities for Foreign Direct Investment in Indonesia

Copyright © 2017 Indonesia Investment Coordinating Board. All rights reserved.

2

As the largest economy in ASEAN, Indonesia is the third fastest growingeconomy among G20, with a positive growth trend

2015 2016 2017 2018

% point difference from June

2016 projections

Country 2014 2015 2016 2017 2018 2019

real GDP growth at

market price in % Est. Projections

Cambodia 7.1 7.0 7.0 6.9 6.9 6.8

China 7.3 6.9 6.7 6.5 6.3 6.3

India 7.2 7.6 7.0 7.6 7.8 7.8

Indonesia 5.0 4.8 5.1 5.3 5.5 5.5

LaoPDR 7.5 7.4 7.0 7.0 6.8 7.2

Malaysia 6.0 5.0 4.2 4.3 4.5 4.5

Myanmar 8.0 7.3 6.5 6.9 7.2 7.3

Philippines 6.2 5.9 6.8 6.9 7.0 6.7

Thailand 0.8 2.8 3.1 3.2 3.3 3.4

Vietnam 6.0 6.7 6.0 6.3 6.3 6.2

0.0 0.1 0.1 0.1

0.0 0.0 0.0 0.0

0.0 -0.6 -0.1 0.1

0.0 0.0 0.0 0.0

0.4 0.0 0.0 0.0

0.0 -0.2 -0.2 -0.2

0.3 -1.3 -1.5 -1.1

0.1 0.4 0.7 0.8

0.0 0.6 0.5 0.3

0.0 -0.2 0.0 0.0

10

8

6

4

2

0

-2

-4

-6

-8

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

4,2

3,5 3,3 3,43,1 3,1

3,4

2010 2011 2012 2013 2014 2015 2016 2017

EMEs andDeveloping Countries

AdvancedEconomies

World

5,4

Projection: Oct15Jan16Apr16Jul16

Global Economic Growth Projection Economic Growth Developing Countries (%, YoY)

Source: Bloomberg, IMF, WorldBank, 2017


3

2018 Economic Growth and Development Target

ECONOMIC GROWTH:

(5.2 – 5.6%)

HH Consumption : 5.1 – 5.3% Manufacture : 4.9 – 5.7%

Poverty Rate:

9.8% (9.0 – 10.0%)

Unemployment Rate:

5.2% (5.1 – 5.4%)

Gini Ratio:

0.38

HDI:

71.38

Inflation: 2.5 – 4.5%

USD/IDR: 13,500 – 13,800

AUD/IDR: 9,700 - 10,300

Investment will be the

main driver of Indonesian

Economic growthNPISH Consumption : 5.8 – 6.1%

Gov. Consumption : 3.8 – 4.3%

Investment (GFCF) : 6.3 – 8.0%

Export : 5.1 – 6.1%

Import : 4.5 – 5.5%

Expenditure Side

Construction : 6.7 – 7.6%

Trade : 5.5 – 6.2%

ICT : 10.5 - 11.9%

Financial Service : 10.1 - 11.0%

Agriculture : 3.6 – 4.0%

Transportation : 8.3 – 9.2%

Mining : 1.4 – 1.7%

Electricity & Gas : 5.4 – 6.3%

Production Side


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Investment as the back bone of national economy

Indonesia’s 2017 economic growth target set at 5.1%. In order to achieve that, we need to increase investment and spending.

GDP Components by Expenditures

2017 growth target

GDP 5.1

- Private consumption 5,01- Non-Profit Institutionsconsumption (LNPRT) 10.17

- Government consump. 5.9

- Investment (GCFCF) 6,05- Export 0.09

- Import 0.02

Economic growth target in 2017

5.1%

Consumption and Investmentmust be drive the economic growth

But government consumption will be limited due

to narrow fiscal deficit and priority on capital

expenditure allocation

Investment is needed

to support a strong

economic growth.

INDONESIA UNDER PRESIDENT JOKOWI’S

ADMINISTRATIVE


6

Reforms in improving investment climate

“We keep rolling deregulation measuresuntil we have a good investment climate.”

President Joko Widodo to CNBC, October 2015


7

Economy Policy Packages: Providing Pro Investment Policy

Copyright © 2017 Indonesia Investment Coordinating Board. All rights reserved7

Predictable Wage System

Relaxation of entry

visa policyTax incentive for labor intensive

industriesDwelling time optimization

New Negative List of

Investment that is more open

Tax incentive for transport

industries

Acceleration of infrastructure &

power development

3 Hour Licensing Service in BKPM

Lower energy

costs for industries

Tax incentive on property

Acceleration of land licensing

EODBEase of Doing

Business Improvement

%Affordable housing for the people

e-commerce

Incentive for investment in e-commerce area

Efficiency on National Logistic

Cost


8

BKPM-led Reforms: Work in Progress…

2015 20172016

26 Jan 2015:One Stop Service (OSS)

at BKPM to simplify

investment procedures.

1. 21 ministries & institutions integrated;

2. More than 9,600 Permits issued;

3. 61% Regional PTSP implement e-

licensing.

BKPM26 Oct 2015:

3-Hrs Investment

Licensing Services

The service is part of BKPM’s OSS

program, which will allow prospective

investors with a minimum investment of

IDR 100 billion (US$7.33 million) and/or

absorb a workforce of more than 1,000

people to have their preliminary permits

BKPM30 Jan 2017:3-Hrs Investment

Licensing Services for

Energy SectorsThis rapid licensing procedure is for nine

types of operations (eight of which are

for oil and gas sectors and one of them

is for electricity procurement industry)

22 Feb 2016:Direct construction Phase I Investors can directly start their

project construction before

obtaining construction permits.

April 2016:Negative Investment List Revision1. More business fields open to 100% FDI

2. Less business fields open with condition,

reduced from 664 to 515.

3. More business fields open to foreign

majority share ownership (>50% FDI).

4. Less business fields reserved for

domestic investment

5. Simpler investment procedures

15 Dec 2015:Green Lane FacilityAcceleration and certainty in

custom clearance process

5 Feb 2017:Direct construction Phase II Extended number of industrial

estates that are eligible to utilize

direct consruction facility

What’s Next

?EoDB Improvement

3 July 2017:Digital Principal License

Starting from 3rd July, the

principle license will be issued

on digital document


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Improving Investment Climate:Introduce the 3-Hour investment licensing service to complement the One Stop Service (OSS)

Requirement for utilizing 3-hour Investment Lisencing Service:

BKPM

1. Minimum investment of IDR 100 billion (USD 8 million) and/or employing 1,000 local workers.

2. Application must be submitted directly by at least one candidate of the proposed company stakeholder

• Arrive at One-stop Service at BKPM directly from the airport.

• Consult with Director of Investment Service.

• Submit the required documents & data.

Wait at the lounge while documents are processed by BKPM, in-house notary, ministries, & other government institutions.

Obtain eight documents & letter of land availability within three hours to start your business.

9 documents obtained

Certainty to Start Business

Certainty to Import capital goods

Investment license Certificate of incorporation NPWP / Tax registration TDP / Company registration

APIP / Import identification NIK / Customs registration

Certainty to work Accurate land information

RPTKA / Employment plan IMTA / Working permit

Letter of land availability

No requirements for investment in

infrastructure sectors

Implementation Status (Jan 2016-Jul 2017)

Jan-Dec 2016 Jan-Jul 2017

251 companies 162,100local workers Investment plan: IDR

818.76 trillion

112 companies103,686local workers Investment plan: IDR

460.68 trillion


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Improving Investment Climate:the newest service: 3-Hour Invesment Licensing Service For Energy And Mineral Resources

• Director ARRIVES at Central OSS.• SUBMIT required documents.

RECEIVERequested licensing products

BKPM

9 Type of Licensing

Issued by ESDM3J service

REQUIREMENTSESDM3J service is given if thecompany has fulfilled thechecklist of administrative andtechnical requirements asregulated on MEMR MinisterialDecree No. 15 of 2016.

WAITINGIn Priority Lounge

• OSS : One Stop Service (PTSP)• MEMR : Minister of Energi and Mineral Resources

NO TYPE OF SERVICES REGULAR SERVICE

1. Temporary Business License for Electricity 20 Working Days

2. Temporary Business License for Oil / Fuel / LPG Storage 32 Working Days

3.Temporary Business License for Storage of Processed Products

/ CNG

32 Working Days for

Processed Products

---------40 Working days

for CNG

4. Temporary Business License for LNG Storage 32 Working Days

5. Temporary Business License for Oil Refinery 32 Working Days

6. Temporary Business License for Processing Oil Residue Industry 32 Working Days

7. Temporary Business License for Natural Gas Processing 32 Working Days

8. Temporary Business License for General Trade of Oil/Fuel 40 Working Days

9.Temporary Business License for General Trade of

Processed Products40 Working Days

Status Implementation for ESDM Projects(Jan - Jul 2017)

8 companies12 Licenses has been issued Investment plan: IDR 16.41 trillion


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Improving Investment Climate:Increase the number direct construction facility

Direct Construction No Requirements• No minimum investments or workers is required.

• Available for 32 selected industrial parks in 10 provinces.

• Construction permits can be obtained in parallel with construction process.

Investors can directly start their project construction before obtaining construction permits. This service is supported by both

Central and Regional Governments.

Obtain investment licence at One-stop Service (PTSP) at national or regional level.

• Survey a land within selected industrial parks.

• Acquire the land for your industry.

• Start the construction of your project. No other permits are required.

• Apply for building construction permit & environmental permit, in parallel with construction process.

23Projects

Commercial Prod.

Invest. value IDR 4.13 Trn, total area 63.54 ha, located in 6 KI

22Projects

Construction phase

Invest. value IDR 4.13 Trn, total area 256.54 ha, located in 11 KI

46Projects

Preparation phase

Invest. value IDR 113.51 Trn, area 951.44 ha, located in 12 KI

Project that already utilized KLIK (Feb 2016 - Jul 2017): 91 Projects, investment value IDR124.83 Trillion, total area 1,271.52 ha, located in 14 Industrial Parks (KI).

Available in

32Industrial

Estates in 10 provinces


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Green Lane (Fast Track) Custom Clearance

Import Facility for Capital GoodsAcceleration and certainty in custom clearance process

Faster & Certain• Capital goods do not require screening.• Cutting the processing time from 3-5

days to only 30 minutes.

Simple requirements • Projects under construction • Obliged in reporting quarterly

investment activities (LKPM) • Recommendation from BKPM

CUSTOMS CLEARENCE

New Facility: Status upgrade From RED to GREEN line for new companies under construction

Implementation Status 2016-16 June 2017


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More open to foreign investmentsThe revision of the negative list covers 141 business fields. The diagram (left) is the highlight of the revision.No. Sectors Rev.

1 Agriculture 8

2 Forestry 5

3 Marine & fishery 6

4 Energy 6

5 Industry 4

6 Defense 3

7 Public works 5

8 Trade 9

9 Tourism & creative eco 37

10 Transportation 14

11 ICT 7

12 Finance 6

13 Banking 3

14 Workforce 2

15 Education 1

16 Health 25

Total 141

Negative Investment List 2016


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Indonesia has shown progressive achievement in the past years

120

109

91106

129

2013 2014 2015 2016 2017

Indonesia’s Ease of

Doing Business Rank,

2013-2017

15


15

Policy Reform Has Shown Positive Response: Better Outlook & Higher Confidence & Trust

Investment Grade Rating: Indonesia’s outlook was upgraded to POSITIVE from STABLE by S&P Global, Moody’s, Fitch and Japan

Credit Rating Agency (JCRA)

Consumer Confidence IndexSource: Nielsen, 2017

Indonesia is in the 4th Rank

Nielsen Global Survey of Consumer Confidence and Spending

Intention shows Indonesia’s consumer confidence index is stillin the Top 5 most optimistic countries in theworld after India (136), Philipina (132), and USA (123), and

above Vietnam (112).

BBB- / Stable

Baa3 / Positive

BBB- / Positive

BBB- / Positive

BBB- / Positive

Rank Country Index* Index Changes

1 India 136 +3

2 Philippines 132 -

3 United States 123 +17

4 Indonesia 120 -2

5 Vietnam 112 +5

6 Thailand 110 +2

7United ArabEmirates

108 -

8 China 108 +2

9 Denmark 107 -

10 Pakistan 106 +5

* Indexes above 100 indicates optimism


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Policy Reform Has Shown Positive Response: Better Outlook &Higher Confidence & Trust

According to research results Edelman Trust Barometer 2017, Indonesiaexperienced an increase in the overall Index of Trust in four institutions:government, business, media and NGOs. Indonesia rose as one of thethree countries with the highest confidence index amid decliningconfidence levels of various countries in the world.

Bank Indonesia (BI) in the Consumer Survey said consumer optimismover domestic economic activity increased during March 2017compared to February 2017.

Global Trust Index Source: Edelman, 2017

Indonesia is in the 2nd rank as a country

Consumer Confidence IndexSource: Bank Indonesia, 2017


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Rank Country%

Respondent

1 United States 47

2 China 21

3 India 19

4 United Kingdom 15

5 Germany 13

6 Japan 13

7 Brazil 11

8 Mexico 11

9 Indonesia 8

10 Malaysia 5

UNCTAD’s Global Investment Trends Monitor

The most attractive investment destinations 2016-2018


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By doing the reforms we would like to attract more investment on…

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Labor Intensive Industrye.g: textile, garment, furniture, etc

Export Orientation Industrye.g: automotive, electronic, machinery, etc

Import Substitution Industrye.g: pharmaceutical raw material, petrochemical Tourism

10 New Balis

Lifestyle Industrye.g: creative industry, culinary, fashion

MaritimeIncluding fisheries and cold storage

InfrastructureEnergy, transportation, industrial estates, SEZs

Manufacturing Industry

Value added Industrye.g: agro-industry, smelters, etc


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Thai Investment in Indonesia 2012-Q2 2017

RankDestination

CountryProjects

Capex(USD mil.)

Avg Capex(USD mil.)

1 Myanmar 48 6,771.2 294.4

2 Vietnam 36 3,634.4 330.4

3 China 26 2,476.0 825.3

4 Japan 19 2,090.8 261.4

5 Australia 13 1,379.9 230.0

6 Russia 5 1,230.0 410.0

7 United States 14 606.9 86.7

8 Laos 13 474.6 158.2

9 Malaysia 12 422.9 84.6

10 Indonesia 35 289.4 36.2

Total 337 19.943.7 197.5

46,801,08

4,524,865,556,496,89

7,778,008,46

21,0034,10

Others

Thailand (15)

British Virgin Islands (10)

United Kingdom (9)

Hong Kong (8)

China (7)

Netherlands (6)

Malaysia (5)

United States (4)

South Korea (3)

Japan (2)

Singapore (1)

Non-metallic minerals (48.1%)

Chemical and Pharmaceutical (18.1%)

Transportation equipment (9.4%)

Trade and Repair (8.7%)

Rubber and Plastics (5.4%)

Others (10.2%)

West Java (59.2%)

Banten (26.0%)

Sourth Sumatera (9.4%)

Jakarta (1.9%)

East Java (1.4%)

Others (2.1%)

1.08billion US dollars

FDI realizationin 2012-Q2 2017

3.4%Investment realisation from

Taiwanese investorsin 2012-Q2 2017

2,3%

87,0%

10,7%

Primary

Secondary

Tertiary

88,7%

11,3%

Java

Outside Java

By sector

By location

Source: BKPM, 2017

FDI in Indonesia by Country of Origin (in USD Bil)Source: BKPM, Aug 2017

Thailand Investment to the World (in USD Mil)Source: fDi Market, Aug 2017

31.81billion US dollarsFDI commitmentin 2012-Q2 2017

THE NEW BIG DEALS

(NEWLY EMERGING INDUSTRIES)


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Investment Opportunities : Developing “10 New Bali”

Toba LakeArea : 500 Ha

Investment : USD 1 Billion

Kelayang CapeArea : 1200 Ha

Investment : USD 1.6 Billion

BorobudurArea : 1000 Ha


WakatobiArea : 500 Ha


MorotaiArea : 300 Ha


Lesung CapeArea : 1500 Ha


Seribu IslandsArea : 1000 Ha


Bromo Tengger Semeru

Area : 1000 HaInvestment : USD 1 Billion

MandalikaArea : 1035 Ha


Labuan BajoArea : 1000 Ha


Tourism Special Economic Zone National Strategic Tourism Zone


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The Next Tourism Event in Indonesia: RIF Padang in October 2017

Regional Investment Forum (RIF) is the annual event of IndonesiaInvesment Coordinating Board (BKPM) in multiple citiesnationwide. The investment forum provides 300+ investors andbusiness people from Indonesia and around the world anopportunity to network with each other.

Participants will obtain first-hand investment project opportunitiesand receive reliable information presented by key speakers fromthe central and regional government authorities.

What’s more, there will be an opportunity to meet directly anddiscuss your investment needs with key government authoritiesthrough the prearranged one-on-one business meeting sessions –An introduction and match making with potential Indonesianbusiness partners.

The forum in Padang, West Sumatra, specifically aims to promoteand showcase 8 National Tourism Destinations:1. Mandeh Integrated Maritime Tourism Area2. Gunung Padang Integrated Tourism Area3. Lake Toba4. Tanjung Kelayang5. Tanjung Lesung6. Kepulauan Seribu7. Borobudur8. Bromo - Tengger – Semeru

As part of the 3-day event in Padang, West Sumatra, participantswill be invited to join various site visits, including Gunung PadangIntegrated Tourism Area and Mandeh Beach.

Why You Should Attend this Forum?


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Investment Opportunities : Renewable energy development plan (2017 -2016)Total Plan : 21.5 GW

Sumatera Region Kalimantan Region

Java-Bali Region Sulawesi & Nusa Tenggara Region

Maluku & Papua Region

Source: RUPTL 2017-2026, pln.co.id

PLTS: PembangkitListrik Tenaga Surya (Solar Power Plant)

PLTB: PembangkitListrik Tenaga Bayu(Wind Power Plant)

PLTBm: PembangkitListrik Tenaga Biomassa(Biomass Power Plant)

PLTA: PembangkitListrik Tenaga Air (Hydro Power Plant)

PLTBg: PembangkitListrik Tenaga Biogass(Biogass Power Plant)

PLTSa: PembangkitListrik Tenaga Sampah(Waste to Energy Power Plant)

PLTP: PembangkitListrik Tenaga PanasBumi (Geothermal Power Plant)

Plan Potential

PLTP : 3,305 MW PLTA : 1,193 MW

PLTA : 4,284 MW PLTMH : 752 MW

PLTMH : 983 MW PLTS : 59 MW

PLTS : 5 MWp PLTB : 200 MW

PLTSa / Biomass : 274 MW PLTSa / Biomass : 135 MW

PLTBg : 411 thousand kiloliter

Plan Potential

PLTA : 1,056 MW PLTA : 1,804 MW

PLTMH : 10 MW PLTS : 12 MW

PLTB : 150 MW PLTSa / Biomass : 30 MW

PLTSa / Biomass : 41 MW

Plan Potential

PLTP : 400 MW PLTA : 3,852 MW

PLTA : 2,323 MW PLTS : 38 MW

PLTMH : 221 MW PLTB : 5 MW

PLTS : 52 MWp PLTSa / Biomass : 10 MW

PLTB : 170 MW PLT Ocean : 250 MW


PLTBg : 4,423 thousand kiloliter

Plan Potential

PLTP : 75 MW PLTA : 20 MW

PLTA : 118 MW PLTS : 6 MW

PLTMH : 43 MW



Plan Potential

PLTP : 2,510 MW PLTS : 200 MW

PLTA : 4,562 MW PLTMH : 823 MW

PLTMH : 437 MW PLTSa / Biomass : 30 MW

PLTB : 250 MW



TotalPlan: 21.5 GWPotential: 9.3 GW


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Investment Opportunities : Special Economic Zones

Fiscal incentives in SEZ are regulated underMinister of Finance Regulation No. 104/PMK.010/2016):

Sei MangkeiPalm Oil & Rubber Industry, Fertilizer, Logistics, Tourism

Tanjung Api-apiPalm Oil, Rubber,

Petrochemical Industries

Tanjung LesungTourism

MandalikaTourism

Maloy BatutaPalm Oil, Logging

Industries

BitungFishery, Coconut Oil &

Herbal Pharmacies Industries, Various Industry, Logistics

PaluManufacture, Agro (Rubber, Cacao, Seaweed, & Rattan) Nickel & Ore Industry, Logistics

MorotaiTourism, FisheryIndustry, Business & Logistics

Arun LhoksemawePetrochemical, Logistics,

Oil & GasFood & Paper Manufacture

SorongShipyard, Fishery & TourismKelayang

Tourism

Incentives:Import duty, VAT, Import Income Tax (Article 22), Luxury-goods Sales Tax, and Excise for all goods are exempted plus Tax Holiday (if company’s line of business inline with SEZs core activity) or Tax Allowance (other line of business).


25

Investment Opportunities : A growing of internet user in Indonesia 2017

Digital in Indonesia (in Million) Growth

Active internet users 132.7 +51%

Active Socmed users 106 +34%

Mobile connections 371.4 +14%

Mobile Social Users 92 +39%

5.6billion US

dollarsOnline sales

in 2016

24.7million people purchasing via E-commerce

Digital in ASEAN (in Million) Growth

Active internet users 339.2 +31%

Active Socmed users 305.9 +31%

Mobile connections 854 +8%

Mobile Social Users 272.6 +36%

Population 644.1

GSMA Mobile Connectivity Index of Indonesia

Government support to enhance digital financial inclusion


26

Investment Opportunities: E-commerce market is on track to be one of the largest in Asia

Source: WeAreSocial, Hootsuite, Statista, 2017.

24.74 million people purchasing via e-

commerce in 2016

9 % E-Commerce Penetration in 2016

$5.6 billion value of E-Commerce

Markets in 2016

$228 average annual e-commerce revenue

per user in 2016

E-commerce Presence in Indonesia


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Investment Opportunities: Infrastructure Development

245 project + 2 program with total of investment 4.197 trillion rupiah

Top 5 Sector

Energy

12 Project

IDR 1.242 Trillion

Electricity

1 Program

IDR 1.035 Trillion

Road

74 Project

IDR 684 Trillion

Train

23 Project

613 Trillion

Economic Zones

30 Project

IDR 290 Trillion

National Budget IDR 525 Trillion 13%

State/RegionalOwned Company

IDR 1.258 Trillion 30%

Private IDR 2.414 Trillion 58%

Estimation of Investment Value

Source: Presidential Regulation No. 3 Year 2016 j.o. Presidential Regulation No.58 Year 2017


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Investment Opportunities: Infrastructure Development

new airportsbuilt since 2015

19 132 airportsrehabilitated,

Source: Ministry of Transportation RI, May 2016.

27 airports expanded since 2015

new toll roadsto be finished by 2019

1,000km

Source: Bank Indonesia, May 2016.

2,650kmnew roads development,

46,770kmexisting roads rehabilitation

235km new toll roads will be

ready in 2017

inter-urban railwaysto be finished by 2019

2,159km187km railways developed since 2015

Source: Ministry of Transportation RI, May 2016.

urban railwaysto be finished by 2019

1,099km

The Investment Coordinating Board of the Republic of Indonesia

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Badan Koordinasi Penanaman Modal

(BKPM)Indonesia Investment Coordinating Board

Jln. Jend. Gatot Subroto No. 44Jakarta 12190 - Indonesia

t . +62 21 525 2008

f . +62 21 525 4945

e . [email protected]

www.bkpm.go.id

Thank YouTerima Kasih

Invest inRemarkable Indonesia


30

One-Stop Service (OSS) Centre: Easier, Faster, Transparent and Integrated


31

TAX HOLIDAYTAX ALLOWANCE IMPORT DUTY FACILITY

(Government Regulation No.9/2016)(MoF Regulation No.176/PMK.011/2009

juncto. No. 188/PMK.010/2015)(MoF Regulation No. 103/PMK.010/2016)

145business fieldsEligible for tax allowance, expanded from 143 segments in the previous regulationwith additional segment: clothing industry.

30% from investment value

Reduction of corporate net income tax for 6 years, 5% each year.

•Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project location (especially outside Java island).

5-15YearsTax Exemption, With potential 20 years exemption for project that considered strategic for Indonesia economy.

8 eligible pioneer industries 1. Basic metal industries;2. Oil refinery industries 3. Basic organic chemicals from natural oil

and gas;4. Machinery industries;5. Communication devices industries.6. Agricultural processing7. Marine transportation8. Economic infrastructures other than PPP

RP1trilionMinimum investment plan(USD 80 million).

2 years import duty exemption or 4 years for companies using locally-produced machines (min.30%).

Machines, goods, materials for production

Which produces goods and/or services, including :1. Tourism and culture 2. Public transportation 3. Public health services 4. Mining 5. Construction 6. Telecommunication 7. Port

Industries

INVESTMENT INCENTIVE


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Global and internal challenges on investment

Global Economic Slowdown

Decline in Commodity Prices

Political Risk & Increasing

Protectionism

The overlapping of Investment Licensing and Non Licensing

LAND issues

Infrastructure Condition

Internal Challenges

Labor and productivity issues

Electricity Supply

Spatial Plans (RTRW)

Provision of gas raw materials for industry and power plant

Incentives & Tax Issues

Financing

Global Challenges

Opportunities for Foreign Direct Investment in …majority share ownership (>50% FDI). 4. Less...

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